Eni creates new business groups for energy transition
Eni announced the creation of two new business groups: Natural Resources, to develop the upstream oil & gas portfolio sustainably, promoting energy efficiency and carbon capture; and, Energy Evolution, dedicated to supporting the evolution of the company’s power generation, product transformation and marketing from fossil to bio, blue and green.
Alessandro Puliti will lead Natural Resources and Massimo Mondazzi will lead Energy Evolution.
The new organization is a milestone towards the implementation of Eni’s strategy to 2050, which combines value creation, portfolio sustainability and financial strength.
The key and unique element of this strategy is the combination of growth objectives with financial value creation as well as environmental sustainability, which will lead to a significant reduction in full life-cycle carbon emissions.
The two business groups will maintain close links in the hydrocarbon value chain, with the objective of best managing the different phases of the energy transition and jointly developing decarbonization processes to supply bio, blue and green products.
Eni’s central corporate functions will be organized to support the company’s CEO in his integrated compliance, control and risk management responsibilities, and the business groups in meeting their objectives.
Eni Chief Executive Officer Claudio Descalzi said: “This new structure reflects Eni’s pivot to the energy transition. An irreversible path that will make us leaders in decarbonized energy products.”
Natural Resources will continue to build up the value of Eni’s oil & gas upstream portfolio, with the objective of reducing its carbon footprint by scaling up energy efficiency and expanding production in the natural gas business, and its position in the wholesale market. Furthermore, it will focus its actions on the development of carbon capture and compensation projects. Continuous technological development, and increased efficiency will allow the maximization of cash generation, even in challenging scenarios.
The business group will incorporate Eni’s oil & gas exploration, development and production activities, natural gas wholesale via pipeline and LNG. In addition, it will include forestry conservation (REDD+) and carbon storage projects, and sustainability which will continue to integrate across all Eni’s activities. The company Eni Rewind (environmental activities), will also be consolidated in this business group.
Energy Evolution will focus on the evolution of the businesses of power generation, transformation and marketing of products from fossil to bio, blue and green. In particular, it will focus on growing power generation from renewable energy and biomethane, it will coordinate the bio and circular evolution of the company’s refining system and chemical business, and it will further develop Eni’s retail portfolio, providing increasingly more decarbonized products for mobility, household consumption and small enterprises.
The business group will incorporate the activities of power generation from natural gas and renewables, the refining and chemicals businesses, Retail Gas & Power and mobility Marketing. The companies Versalis (chemical products) and Eni gas e luce will also be consolidated in this business group.
The two new business groups will maintain a strong link in the management of the hydrocarbons value chain, with the objectives of running in the best possible way the phases of the energy transition, and jointly developing decarbonization processes to supply green, blue and bio products. Decarbonized, through carbon capture, gas to power and gas to hydrogen projects will be examples, allowing to add value to gas resources and provide customers with entirely sustainable energy.
Furthermore, in terms of central structures, a new function – Technology, R&D, and Digital – will be created. This underlines the strategic relevance that Research & Development and technological innovation represent for Eni as a key driver to create value and growth, through the development of new technologies and their fast implementation on an industrial scale. By leveraging on its know-how and technologies, Eni has traced the evolution of its businesses for the next 30 years. Research projects cover the whole value chain, with the objective of reducing risks, increasing efficiency, reinforcing technological leadership and promoting better quality, products, plants and processes.
The new group will incorporate the current ICT and Digital activities, which are a key support to the transformation of Eni’s business model, as well as the management of the technical and scientific knowledge which the new business groups will implement.
All other central functions will be further streamlined and reorganized to offer the best support, in terms of structures and competences, in delivering on Eni’s new mission and on the objectives of the two new business groups.
The new organizational structure will be implemented over the coming weeks. Massimo Mondazzi will keep his role as Eni’s Chief Financial Officer until August 1st, 2020.